Yamana Announces Metal Purchase Agreements With Sandstorm and Provides Update on Brio Gold Monetization Initiative
The Transaction is one of various alternatives the Company has been evaluating and advancing to help achieve its stated goal of reducing the balance owning on its revolving credit facility to nil. The Company continues to advance other alternatives on a number of fronts including the planned monetization of its subsidiary Brio Gold Inc. ("Brio Gold"), an update for which is provided below.
Yamana's Executive Vice President, Finance and Chief Financial Officer Charles Main provided comments on the Transaction as follows: "We are very pleased to have completed this transaction. The streams that we have put in place do not have significant impacts on the projects to which they relate. They represent a modest portion of our copper and silver production which are secondary metals to Yamana and they do not impact our exposure to our primary metal which is gold. With this deal, and with the successful completion of a deal on Brio Gold, the goal and expectation is to be in a position to have generated cash proceeds well in excess of the amount required to complete the pay down of our credit facility prior to year end, which was one of our strategic objectives for the year. This would leave us with a five year undrawn credit facility of $1 billion along with an increased cash balance. With modest debt repayments of $118 million scheduled for the next couple of years, we believe that Yamana is very well positioned to fully execute on its business plan and on generating and increasing cash flow and free cash flow."
Peter Marrone, the Company's Chairman and Chief Executive Officer provided a further comment as follows: "We are following through on our commitment to strengthen the Company's balance sheet. As Chuck mentioned, this has been a strategic objective for the year. These streaming transactions are a modest and benign way to reduce debt without taking away our leverage and exposure to gold. Our monetization efforts relating to Brio continue to advance and will further strengthen our balance sheet. With the completion of these financial catalysts, the Company will be well positioned in the new year to shift strategic focus entirely to our core operations, several initiatives relating to optimizations of these operations, increasing production and maximizing cash flow and EBITDA."
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